Todd Gordon's XLB Trade

On CNBC's "Trading Nation," Todd Gordon of Ascent Wealth Partners suggested a bullish options trade in Materials Select Sector SPDR (NYSE: XLB). For traders who want to accumulate XLB shares, he suggested a risk reversal strategy.

He would sell the June $52 put and buy the June $57 call for a total of $2.10. The trade starts to lose money at $49.90. If the stock stays above $52 at the June expiration, he would collect $2.10 and he is going to make additional profit, if it trades above $57. If it trades below $52, he is going to have to buy it at that price.